2.1. Setting the Scene
In 2015, Jasper Kool and Sam Holtus established the social enterprise Happy Tosti, initially called
“Tosti van Josti” (Kool & Holtus, 2018). Social enterprises can be defined as operators in the social economy whose main objective is to deliver social impact rather than make a profit (Verloop &
Hillen, 2012). The particular business model of Happy Tosti is designed to employ a specific target group with labor limitations or disabilities. The people working in a Happy Tosti restaurant may have different physical and mental disabilities. Happy Tosti provides a learning and work environment to prepare the specific target group for the actual labor market. Moreover, Happy Tosti’s desire is to emphasize the “happy feeling” among customers and employees, in particular by serving organic, healthy, and fair-trade products. The mission of Happy Tosti is described as follows: “Happy Tosti creates an environment for everyone with a labor limitation or disability. In producing the most delicious sandwiches in the world, we will focus on our commitment to quality and services in order to create customer satisfaction. By combining a commercial approach with social involvement, Happy Tosti can conquer the world’’ (van Houwelingen & van Baalen, 2017).
2.2. The Research Problem
Happy Tosti has recently opened seven restaurants in the Netherlands. Because of the success of Happy Tosti in the Netherlands, the goal of expanding the social enterprise to a new market environment seems realistic (Kool, 2018). This study aims to contribute to the ambitions of Happy Tosti by investigating a potential new market environment. The investigation requires understanding the market potential for establishing a new Happy Tosti location. Two countries have been selected by Happy Tosti to be examined: Germany and the United Kingdom. These two countries are significant to Happy Tosti for several reasons, such as the distance to the Netherlands, the language, the owners’ networks, and business relations (Kool, 2018). In order to examine the possible expansion of Happy Tosti, research in both market environments is important in order to draft a recommendation of which country is most suitable as a new market for Happy Tosti.
In order to best contribute to the body of knowledge required for Happy Tosti to expand into a market, the research question and sub-questions have been shaped in close consultation with Happy Tosti. The following research question had been formulated:
What is the potential for Happy Tosti to enter a new market in Germany and the United Kingdom?
In order to answer the central research question, the following sub-questions are examined:
1. What kind of social enterprise is Happy Tosti?
Every aspect of the Happy Tosti business model must be identified in order to assess the suitability of each market environment for Happy Tosti.
2. What are the environmental conditions in Germany and the United Kingdom as they affect Happy Tosti?
The significant impact on the organizational structures of a potential social enterprise; as well on it’s the relationships with others in the social enterprise market makes it essential for Happy Tosti to investigate.
3. Which players exist in the market environments for social enterprises of Germany and the United Kingdom?
The social enterprise model of Happy Tosti must be investigated to indicate which players already exist in the German and English market. In order to answer the central research question, it is important to recognize the players already involved in Germany and the United Kingdom, as they could affect Happy Tosti’s market environment.
4. Which ecosystem suits the Happy Tosti approach best: Germany or the United Kingdom?
In order to answer the central research question, the ecosystem analysis of Germany and the United Kingdom will be used to show the most suitable country for Happy Tosti to expand into.
2.3. The Research Approach
This research will provide an ecosystem analysis of the potential for Happy Tosti to enter the German or English market. Both countries will be analyzed in order to compare their market
environments. At the end, a recommendation will be made for the German or English market depending on which country suits the Happy Tosti concept best. To address the central research question, this study adopts the theoretical framework of an ecosystem analysis from Paul N. Bloom and Gregory Dees (2008). Developed by the originators of the theory, this ecosystem analysis departs from an industrial business framework and is a particular analysis on social enterprise markets. It requires dealing with complex social systems involving players in political, economic, physical, and cultural environments. The reason that this framework was chosen is because traditional frameworks did not provide enough information. This research will be conducted within an ecosystem framework, which contains a suitable mapping structure which helps to identify the German and English market environments and all of the players and environmental conditions involved in each (Bloom & Dees, 2008).
2.4. Scope and Limitations
The theoretical lens of this research will be focused on the expansion of Happy Tosti through an ecosystem mapping exercise in Germany and The United Kingdom. The research is geographically limited. The potential markets were selected by Happy Tosti, these countries were preferred because of accessible languages and established networks and business relationships (Kool, 2018).
2.4.1. Research Report
This research report is a market analysis, which can be considered as a first step in realizing market expansion for Happy Tosti. It does not incorporate marketing strategies for Happy Tosti. Also, operational actions are not included in the market analysis of this research report. However, these could be included in later phases of research for Happy Tosti.
2.5. Report Structure
The report is divided into fix sections. First, the theoretical framework of an ecosystem model will be presented. Second, the methodology used for this research will be elaborated upon. After that, ecosystem-mapping structures for Germany and the United Kingdom will be described. Fourth, the results of the ecosystem mapping research will be presented to the owners of Happy Tosti. Fifth, an analysis on the findings of the Happy Tosti owners and the ecosystem mapping theory will be
presented. Finally, the research conclusions and the recommendations for Happy Tosti will be presented.